Published: 2024-08-23T15:30:23.000Z
GBP flows: Bailey Steady Course
Director of Research , Macroeconomics and Strategy
1
GBP has gained a little extra ground, as BOE Bailey in Jackson Hole signals gradual rate moves.
BOE Bailey key quotes that are that it is too early to declare victory against inflation and the course will be a steady one. This suggests gradual rate cuts and argue for 25bps November, with no move in September. Though real sector data has been good in H1, this will likely fade in H2 and more tax increases are expected in October budget.